Business Strategy Report: Sony Mobile Communications Analysis

This report provides a comprehensive analysis of Sony Mobile Communications' strategic planning. It begins with an introduction to strategic planning and its importance for business sustainability. The report then explores alternative strategies for Sony, including substantive and limited growth options, and market entry strategies such as joint ventures, OEM contracts, and wholly owned subsidiaries. The justification for the proposed strategy, emphasizing a joint venture with Ericsson, is detailed. The report further outlines the roles and responsibilities of Sony staff involved in strategy implementation, along with the necessary resource requirements, including financial, human, and technological resources. Targets and timescales for achieving strategic goals are also presented, utilizing a balanced scorecard approach for clarifying, communicating, planning, and providing strategic feedback. The report concludes with a summary of the findings, emphasizing the importance of strategic planning for Sony Mobile's growth and success in the competitive mobile market.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION......................................................................................................................1
TASK 3......................................................................................................................................1
3.1 Alternative strategy for Sony Corporation.......................................................................1
3.2 Justification of proposed strategy.....................................................................................2
TASK 4......................................................................................................................................3
4.1 Roles and responsibilities of Sony staff who are directly involved in strategy
implementation.......................................................................................................................3
4.2 Resource requirements for Strategy implementation.......................................................4
4.3 Targets and timescales for achievement...........................................................................5
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................7

INTRODUCTION
Strategic planning is defined as an initial step for sustainable funding of the company.
The business plan of company should be creative, simple and straightforward that can bring
valuable advantages. It is the procedure of taking systematic decisions for projected future
results that comprises developing corporate objectives for long term as well as evaluation of
its environment along with mapping a plan for its attainment. The strategic planning involves
likelihood of altering environment, which would require changes in set goals and procedure
for the organization long term sustainability in the market. Here, the paper is briefing about
Sony Mobile Communications strategic planning for the development plus execution of new
strategy to grow and improve its business undertakings. The reader will also find content
regarding resources required as well as different responsibilities and roles in implementing
the strategic plan successfully. The paper is summarizing with an explanation of way to
monitor strategic performance of organization.
TASK 3
3.1 Alternative strategy for Sony Corporation
Substantive growth strategies – It would include company’s horizontal integration with rivals
or vertical with suppliers for attaining competitive edge. This is not a good option for Sony
mobile communication in such a competitive market. But the role of mobile phones in the
vision of service and product synergy offers potential for substantive growth by incorporating
with its internal strategic business units (Buul, 2010).
Limited growth – It intends that strategy is apprehensive with market development,
penetration and product development. Even though, cell phone is a well-developed item, the
features of Sony like interconnectivity and networking makes it unique in comparison to
standard products provided by most of the rivals. The strategy of limited growth provide
Sony mobile communications a safe method to grow and re-establish itself. By utilizing
available main capabilities for accessing new market or regions, Sony can build its financial
affairs and status in global market (Doole and Lowe, 2008).
Market entry strategies – There are some valuable strategies for Sony mobile
communications to enter into different markets. First of all, Sony should join Ericsson to
increase its miniature share in the market that making it difficult to attain growth and enhance
its position in the worldwide market of handset, which has been weak relatively in
comparison to rivalries. The market of cell phone had been going over a “rough patch” and it
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becoming more problematic to gauge. Moreover, the dominance of Nokia in the industry is
influence its competitors share including Sony (Eyceoz, 2009).
Another option for Sony mobile is licensing that can bring many advantages like
increase in the quality of process and product, shortening of product development time,
expansion in the capabilities of existing business and development of competitive edge. But
in spite of such advantages, the particular strategy would not be suitable for the organization,
as does not provide direct control over production facilities, strategy as well as the manner in
which their technology is marketed. Also, Sony Ericsson can make OEM contracts to enter
easily into overseas markets. Through this, Sony would be able to enter into European market
at low risk with the complete know-how of local culture and taste as well as link to wireless
operators at local level (Ferrell and Hartline, 2012).
Besides above, Wholly Owned Subsidiaries is another avenue for Sony Mobile
Communications. The main advantage of this strategy can be technological competence. The
wholly owned subsidiaries by having technological competence, reduces risk of losing
control. Such reduction in level of risk is significant for the corporation in sustaining
competitive position in the market. Moreover, the subsidiaries would provide Sony with a
strong control over its operations in distinct nations where it undertakes its operations
through subsidiaries (Foster, 2014).
3.2 Justification of proposed strategy
As total market share of Ericsson is four time of Sony’s share in the mobile sector as
well as its market present in Europe is relatively weak then Ericsson, a partnership with a
Swedish company Ericsson can be seen as a manner to get growth in novel areas. May be the
main issue for Ericsson is that while they manufacture high quality, well-functioning phones
but unable to sell them effectively, as they are not able to cater with customers tastes. On the
other side, Sony is fail to complete in the market of cell phones but can able to sell its other
commodities well. Therefore, the combination of two organizations can prove possibly to a
very successful venture (Hill and Jones, 2008).
Furthermore, a joint venture means that Ericsson can bring the world’s biggest
available base of customers and expansive knowledge of mobile infrastructure that it run in
140 nations. Sony Mobile Communications can also have good access to cutting edge
technology of Ericsson and together with competitive marketing campaign of Sony, the
partnership would bring complementary resources together in a more systematic way. In
linking forces with Ericsson, the Sony Corporation required to widen its mobile
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communications platform that it considers of great importance for its future existence in
advanced electronics systems and consumer products. For instance, while Sony was able to
target mass market with handsets of low-tech, it was not competent in offering networking
clients with high-end gadgets, which Ericsson was successfully. Moreover, media holdings of
Sony in games, music and film would be aided by links of Ericsson’s to wireless operators
(Lafayette, 2010).
Additionally, in case of OEM and licensing, Sony mobile communications can attain
good access to technological “prowess” of Ericsson, however it does not provide company
with better access to European markets and associations to wireless operators. Hence, in such
situation, Franchising would be best option for the organization (Mwalenga, 2012).
Besides above, the rising popularity of mobile internet technology and 3G plus 4G,
means that globalization of brand can be done on the basis of Sony’s popularity in Japan and
Ericsson in Europe. The Chief Operating Officer of Sony has been predicted that the industry
of cell phone would move in the direction of network based on multi-media broadband where
consumers would demand phones that are capable to handle games pictures, movies and
music easily. Since, Sony Mobile Communications has dominancy in all such areas, it is in
best interest of Ericsson to move in this merger (Paley, 2007).
TASK 4
4.1 Roles and responsibilities of Sony staff who are directly involved in strategy
implementation
The successful execution of strategy need the great involvement and attention of both
managers and employees of every level within the organization. The team of senior
management executives at Sony Mobile Communications should come together for
challenging, reviewing, discussing and agreeing on strategic direction and main components
of the plan. Without the genuine commitment of management team, the implementation
would not be successful. In this the main role of CEO is to communicate vision of company
and guide strategic planning (Beer and Eisenstat, 2000). Also, the specific procedure needs
participation from all departments that would be influenced by particular implementation.
The management executives are required to determine such units and create of team for
implementing strategy by incorporating representatives from all affected group. Furthermore,
employees should be supported by management in comprehending that in what manner the
specific execution will be advantageous to the company. The overall procedure is dynamic
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that should be changed and monitored by management to reach the execution goals
(Camponovo and Pigneur, 2003).
Additionally, the responsibility of management team include effective monitoring of
current system, analysis of data that would be collected during the implementation and make
important changes for making the execution valuable or productive for the organization. The
management team at Sony Mobile Communications should be able to determine definite
period of completing each phase of implementation and be ready for transition of company
into other phase (Gawer, Cusumano and Strategy, 2012).
Besides above, as the procedure will possibly influence responsibilities and roles of
employees, they require to have clear understanding of it both during and afterward of
implementation. Moreover, employees must know about likely changes to their routine duties
through the execution. It involves taking of time for making voice concerns, seeking out
answers and resolving difficulties as changes are put in place (Green, Harper, Murtagh and
Cooper, 2001).
4.2 Resource requirements for Strategy implementation
These are some main resources necessary for successful implementation of strategy by Sony
Mobile Communications:
 Resources – The organization should have sufficient funds and good time for
implementing new strategy. Often, true costs are not underestimated or identified, it may
demand a commitment of realistic time from staff to reach goal, an identification of
unexpected costs invade by retailer and clear expenses linked to the strategy (Horswill and
et.al., 2010).
 People – The main thing to be ensured by owner while strategic implementation is having
right executives on board. It includes persons with necessary competencies and skills that
are required to support the plan. Furthermore, in planning month, the management must
conduct recruitments that are necessary in this relation as well as enhance employee’s
skills by training for making the overall implementation successful.
 Systems – Both management and technological systems supports in tracking the progress
of plan and improve the capability of organization to adopt with changes. Also, the
organisation should set milestones, as a part of system that must be complete in defined
time. Moreover, Sony Mobile Communications can use scorecards that progress tracking
and incorporates milestones (Pangarkar, 2011).
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 Structure – Sony should decide lines of authority and management structure and have clear
plus open lines of communication with staffs. The plan developer and regular meetings
can support in developing correct structure at workplace. Also, meetings for reviewing the
implementation progress should be schedule monthly or quarterly on the basis of activity
level and overall period of planning.
 Culture – The Company should create an environment that best engage its manpower to
business mission and makes them feel comfortable. To reinforce the importance of
concentrating on strategy and vision, the organization must offer rewards to employees on
their best achievements. Furthermore, the management should estimate and reveal both
positive and negative outcomes of executing or not implementing the decided strategy
(Peppard and Rylander, 2006).
4.3 Targets and timescales for achievement
The balance score card can be used by management for implementing strategy at each level
in Sony Mobile Communications for enabling the following functions:
 Clarifying strategy – The management will firstly translate the objectives into quantifiable
terms for clarifying it to main stakeholders and support in developing a coherent
agreement.
 Strategic objectives communication – Then with the effective use of balance score card,
the management will translate high level goals into operational tasks to be performed and
adequately communicate the strategy throughout the corporation (Svensson, 2009).
 Planning, targets setting and aligning strategic initiatives – The management will set
achievable targets for all perspective, like 4% increase in market share through joint
venture, 5% increase in total sales from Europe through franchising, etc. Moreover,
initiatives will be developed at this stage for aligning efforts of all involved parties into
reaching the set targets.
 Strategic feedback and learning – At last, management team get feedback from
departmental heads and change leader that whether the implementation of strategy is
proceeding as per the planning and whether it is successful or not (Zhang and Liang,
2011).
The given functions will be conducted in a sequential steps in defined time period, such as:
Targets April May June July August September
Clarifying
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strategy
Strategic
objectives
communication
Planning,
targets setting
and aligning
strategic
initiatives
Strategic
feedback and
learning
CONCLUSION
The above report concludes that, joint venture and merger is generally take place when
an organization seek for solution effects in relation to specific market. Substantive growth
includes horizontal and vertical integration, related and unrelated diversification that can be
applied through merger. Franchising can be less riskier and productive tool to make overseas
growth in comparison license and OEM contracts. The final phase, i.e. strategy
implementation is very complex process in the strategic planning in which taken decisions
are exactly put into real actions. The main point in implementation of strategy at organization
is its proper functioning in routine work practice. Also, the report is showing that cell phone
industry has been already extended throughout the globe and Sony Mobile Communications
through its good returns on investment and core competencies can get dominance in the
particular sector.
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REFERENCES
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formulating-goals-and-strategies.aspx>. [Accessed on 23 August 2015].
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Svensson, G., 2009. The transparency of SCM ethics: conceptual framework and empirical
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